Advertisement
Home About Us Contact Us Magazine Subscribe Now
Welcome to TheMReport.com—News and strategies for the evolving mortgage marketplace. Thu May 23, 2013
Origination Analytics Servicing Secondary Market Technology Processing Administration
Investors Lenders & Servicers Service Providers Attorneys & Title Companies Agents & Brokers

Mortgage Rates Climb on Stronger Job Numbers

Strong employment reports boosted mortgage rates back up for the second week in a row, Freddie Mac reported Thursday.

The GSE’s Primary Mortgage Market Survey shows the 30-year fixed averaging 3.59 percent (0.6 point) for the week ending August 9, an increase from 3.55 percent the previous week.

The 15-year fixed also posted gains, averaging 2.84 percent (0.6 point) for the week, up from 2.83 percent a week ago.

The 5-year adjustable-rate mortgage (ARM) followed, increasing to 2.77 percent (0.6 point) from 2.75 percent the week before. The 1-year ARM actually continued to drop, however, falling to 2.65 percent (0.4 point) from 2.70 percent previously.

Frank Nothaft, VP and chief economist at Freddie Mac, said the week’s positive employment news may be a sign of more growth to come.

“Fixed mortgage rates inched up again this week following stronger-than-expected employment reports. The economy added 163,000 jobs in July, well above the market consensus forecast of 100,000 and the largest increase since February,” Nothaft said.

“In addition, the number of announced corporate layoffs fell 45 percent in July compared to last July and was the third time this year that announced layoffs were less than the same month in 2011, according to The Challenger Report. This suggests further net gains in employment are likely in the near future,” he added.

Bankrate.com reported marginal gains in mortgage rates. The 30-year fixed increased to 3.81 percent (from 3.77 percent last week), while the 15-year fixed inched up to 3.00 percent (from 2.99 percent). Meanwhile the 5-year and 1-year ARMs stayed flat at 2.91 percent.

“With investors no longer feeling as if the sky is falling, at least temporarily, fixed mortgage rates did move a tad higher. Mortgage rates are closely related to yields on long-term government bonds. Should the better economic news continue, it would keep further Fed stimulus at bay, and likely push up rates a bit more, so stay tuned,” Bankrate.com said.


Friend's Name


Friend's Email*


Your Name


Your Email*


Security Code


Enter security code*

Message


Advertisement

Advertisement

Sign up for daily e-mail updates.



Looking for more out of MReport? You can always pass on your knowledge, news tips, and story ideas to be considered for TheMreport.com or the MReport magazine.

Simply e-mail MReportEditor@TheMReport.com.

We appreciate your time and contribution. Whether you choose to tell us a little about yourself or prefer anonymity, we want to hear from our readers!


Advertisement
About Us

TheMReport.com keeps you informed through daily Web casts, community forums and a wide range of industry resources. With one click to TheMReport.com, the Mortgage Origination industry is at your fingertips!

Home About Us Contact Us Magazine Subscribe Now